Flushing, Inc. initially reported a retained earnings balance of $100,000 at December 31, 2020. In May 2021, Flushing discovered an error: Insurance premiums of $60,000 for the three-year period beginning July 1, 2020, had been paid and fully expensed in 2020.

What amount should Flushing report as adjusted beginning retained earnings in its 2021 statement of retained earnings?

Multiple Choice

• $100,000

• $110,000

• $160,000

• $150,000